Med Center's Bad Faith Claim Against Insurer Can Proceed

By Shane Dilworth (October 13, 2021, 8:28 PM EDT) -- An eye surgery center sufficiently argued that a CNA Financial Corp. unit acted in bad faith in refusing to cover losses caused by the COVID-19 pandemic, a New Mexico federal judge said, but she found the policyholder's other allegations need refining.

U.S. District Judge Kea W. Riggs ruled that the bad faith claim brought by Albuquerque Ambulatory Eye Surgery Center, or AAESC, could proceed even though it is unclear if its alleged losses are covered under a policy issued by CNA unit Transportation Insurance Co.

The eye center said the insurer acted in bad faith when denying its claim for losses...

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